Fleet News

Graduated VED could get go-ahead in next Budget

THE Government could give the thumbs-up to the introduction of graduated vehicle excise duty in the Budget and announce an implementation date, it was claimed this week. As industry experts try to guess Chancellor of the Exchequer Gordon Brown's Budget plans for the fleet industry, wider motor industry expectations were high that the Budget's transport focal point would be reform of the present VED system.

Despite widespread industry discontent at many of the proposals in the VED consultation document - the consultation period ends on January 31 - it is possible that Brown's Budget announcement could reveal a start date, although full details of the new scheme may not be divulged. Association of Car Fleet Operators director Stewart Whyte said that despite criticism of the system the basis for the new system could be announced and he suggested it could be introduced as soon as April 1.

Other commentators were less optimistic, suggesting it was too soon for the basis of reform to be announced although a start date of September or October could be revealed. Christopher Macgowan, chief executive of the Retail Motor Industry Federation, said: 'I would be amazed if the Government got its act together on VED changes within a year.'

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